$5.8 Million Settlement of FLSA Misclassification Lawsuit Against Bank of America

On November 18, 2014, the U.S. District Court for the Central District of California approved a settlement for one of the two classes in the case Terry P Boyd v. Bank of America Corp et al., awarding $5.8 million to be distributed among the approximately 368 class members, after payment of $1,933,333.33 in attorneys’ fees plus $30,000 in litigation costs. The amounts to be distributed will be based on the number of adjusted eligible workweeks worked, resulting in an average recovery of $10,840, with an additional $30,000 divided between the two named plaintiffs. The Settlement Agreement also specifies that the defendants will reclassify these employees–Residential Appraisers and Review Appraisers–and that this reclassification will yield “significant, ongoing benefits” for class members.

Bank of America allegedly misclassified its Appraisers as exempt from the overtime requirements of the Fair Labor Standards Act and corresponding sections of the California Labor Code. According to Plaintiffs’ allegations, the job duties of Appraisers involved generating appraisals, under the direct supervision of company managers, by following pre-established guidelines. Thus, they argue, these employees should not have fallen under the administrative exemption from the FLSA’s overtime requirements, since they “lack significant discretion over appraisal values they assign.”

The Appraisers’ compensation was determined by the number of appraisals they completed, and they were required to meet a minimum number of appraisals. As a result, appraisers were required to work “far in excess of forty hours per week,” including regularly working holidays and weekends; in fact, it was common for appraisers to work seven days, and often for up to eighty hours, each week.

If you believe your employer has violated your rights under the Fair Labor Standards Act, please contact The Harman Firm, LLP.